Home Care Manufacturer Gets a 3PL to Make the Hard Decisions - Hub Group
Hub Group helped a mid-size CPG company win its battle against retailer non-compliance.
A leading home care manufacturer's impressive growth began to push its supply chain to the limits. In servicing major retailer relationships, performance was a key element in maintaining good standing.
As project orders began to surge, the manufacturer began to see a spike in costly truckload rates, which was viewed as the only mode viable to deliver for its service-sensitive customer. The manufacturer needed to find a solution to balance both cost and performance expectations, likely a customized solution that was built around them.
The manufacturer looked to Hub Group to develop a solution that found the meticulous balance of cost and service. Harnessing Hub Group's optimization and management expertise, the customer received a dynamic and responsive solution that ensured every PO met cost-effective precision service.
Hub Group's solution began by creating a pricing net for the entire network. Assigning truckload and cost-competitive intermodal rates to each lane, the customer had pricing locked in and ready to go regardless of transit requirements. This eliminated the need to get spot rates or wait for pricing, shortening lead time, reducing costs, and streamlining processes.
Next, Hub Group developed a system that quickly selects the best service based on numerous variables. When an order is ready, the shipper tells Hub Group when the PO is due to the retailer. Hub Group's experts track network performance and capacity on an ongoing basis, and quickly determine if the order is more suitable for intermodal or truckload based on current market conditions—something no other provider would implement.
Hub Group's solution stemmed the tide on the transportation cost trend and fortified the manufacturer's network. By optimizing mode selection while maintaining performance expectations, Hub Group eliminated the non-compliance penalty fees associated with missed appointment times while delivering savings with an intermodal solution.
With a holistic solution in hand, the customer continues to stock the shelves in the industry's leading big-box retailers, avoiding service penalties and preserving valuable relationships. This manufacturer's growth continues unhindered with the flexible solution only Hub Group would deliver.
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